Bpp learning Media is an acca approved Content Provider

QUESTION 
Value activities
 
Outline different ways in which the restaurant can create value. 
ANSWER 
Here are some ideas. Each of these options is a way of organising the activities of buying, cooking and 
serving food in a way that customers will value. 
(a) 
It can become more efficient, by automating the production of food, as in a fast food chain. 
(b) 
The chef can develop commercial relationships with growers, so he or she can obtain the best 
quality fresh produce. 
(c) 
The chef can specialise in a particular type of cuisine (eg Nepalese, Korean). 
(d) 
The restaurant can be sumptuously decorated for those customers who value atmosphere and a 
sense of occasion, in addition to a restaurant's purely gastronomic pleasures. 
(e) 
The restaurant can serve a particular type of customer (eg celebrities). 
 
BPP Tutor Toolkit Copy

---

CHAPTER 2
//
THE BUSINESS ENVIRONMENT 
 
49 
12.3 The value chain 
Porter's Value Chain (Porter, 1985) groups the various activities of an organisation into a 
value chain
.
Here is a diagram. 
The 
margin 
is the excess the customer is prepared to 
pay 
over the 
cost 
to the firm of obtaining resource 
inputs and providing value activities. It represents the 
value created 
by the 
value activities 
themselves 
and by the 
management of the linkages 
between them. 
Primary activities 
are directly related to production, sales, marketing, delivery and service. 
Activity 
Comment 
Inbound logistics 
Receiving, handling and storing inputs to the production system: warehousing, 
transport, inventory control, and so on